6 Things to Do Before Putting Your Medical Practice Up for Sale

6 Things to Do Before Putting Your Medical Practice Up for Sale

Are you thinking of putting your family medical practice up for sale in Texas? Selling can be a convenient strategy to transition toward retirement or pursue a new venture. It’s important to remember, though, that this can be an emotionally charged journey that necessitates careful planning and strategic thinking. You’ll also want to secure the right buyer for your family medical practice for sale in Texas, whether that buyer is a fellow physician, a group practice organization, or even a hospital, a private investor, or a management service company.

Regardless of who ends up purchasing your practice, there are certain steps you need to take before putting your family medical practice up for sale in Texas:

Maintain and organize detailed and accurate financial records.

As a physician, you should be fully aware of all the liabilities and assets of your family practice. Ensure that your accounts receivables are accurate and that historical contractual adjustments are properly recorded. A prospective buyer will likely request to review your financial statements and use them as a basis for the purchase price. This is also a necessary part of their due diligence process.

Keep your contracts in order.

Make sure all relevant contracts are up-to-date and organized. This includes managed care contracts, electronic medical records, lease agreements, employment contracts, equipment contracts, and revenue cycle management agreements. Ideally, these contracts should be transferable and current. If you have any existing debt instruments that could affect your assets, ensure they’re settled with transaction funds or get a release of practice collateral before listing your family medicine practice for sale in Texas.

Stay up-to-date on tax payments.

Ensure your practice is current on all tax payments and doesn’t have any outstanding tax-related debt. Also, make sure your medical practice is in good standing with the Secretary of State. As a business, your family medical practice should have all relevant assumed names registered with the county and state where they are in use. Maintain an updated corporate records book that includes all the documents you have filed with the Secretary of State, as well as written consents and minutes of all directors and shareholders.

Discuss the future with your practice’s stakeholders.

Before selling your practice, talk with your partners, associates, or other practice owners about their plans post-acquisition. Will you retire completely? Will they work under the new owner? Will any of the current owners stay in the practice after the sale? The answers to these questions could influence the method of acquisition and the purchase price of your practice. If the owners don’t plan on practicing anymore, the agreement should contain a clause preventing them from competing with the new owner in a specific region for a certain period.

Get a practice valuation.

Knowing your practice’s worth is absolutely crucial before selling. By hiring a medical practice valuation service, you can remove the uncertainty from this process.

Research and hire accountants, medical practice brokers, and legal counsel

Make it a priority to hire competent accountants, attorneys, and medical practice brokers before listing your family medical practice for sale in Texas. The healthcare industry is complex and highly regulated, meaning that even the smallest details can make a significant difference.

Medical practice brokers can assist in finding qualified buyers. They can also help value your practice and ascertain the most competitive purchase price. Meanwhile, accountants can review your financial statements to ensure they fairly and accurately represent your financial situation. Alongside your attorney, they can also help identify the best tax strategies.

Start your preparation now!

Contact Strategic Medical Brokers for assistance in putting your family medical practice up for sale in Texas. Their expert team will professionally and diligently handle all aspects of the sale, from the initial consultation to valuation, promotion, marketing, negotiations, and finally, closing the deal.

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